Multibagger Stock: Those who invested Rs 10,000 are playing for Rs 2.5 lakh, should you buy this stock?

New Delhi: The shares of Astec Lifesciences, a company manufacturing agrochemicals and pharmaceutical intermediates, have seen a lot of growth in the last 10 years. During this period, it has given a return of 2,590% to its shareholders. If an investor had invested Rs 10,000 in this stock four years ago and today the value of his investment would have increased to Rs 2.5 lakh. However, in recent times, its pace of growth has slowed down somewhat. In the last six months, the company’s shares have risen by 33%, while this year it has jumped by about 33 per cent.

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According to the shareholding pattern available with the exchanges, promoters hold 66.75% stake in Astec Lifesciences, while the remaining 33.25% stake is held by public shareholders. Among public shareholders, mutual funds hold a little over 7% in the company, while foreign investors do not hold any significant stake. In the recent March 2024 quarter, the company reported consolidated total income of Rs 156 crore as against Rs 129 crore in the same quarter last year. Meanwhile, consolidated EBITDA in the fourth quarter rose to Rs 14.8 crore as against Rs 8 crore in the same period last year.

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How far will the price go

Analysts say that Astec Lifesciences stock is technically making a rounding base pattern breakout with good volumes on the weekly chart. M Vasudev, Senior Technical Analyst, Arihant Capital, said that its RSI remains positive. The stock has also started outperforming the benchmark indices. Combining these parameters, it is clear that this stock is likely to move upwards. One can hold at the current price with a stop loss of Rs 1302. The stock might test Rs 1690-1800 levels in the coming days.